A staggering £7 billion is thought to have been lost by small businesses, including freelancers and recruitment agencies, due to the freezing UK weather earlier this year.
A survey conducted by Lloyds TSB Commercial found that at least 70% of SMEs were affected and 56% said the cold spell damaged their profits. 39% were either forced to close their premises or were cut off by heavy snow.
More than 33% estimate that they lost up to £10,000, 12.5% said the figure was between £10,000 and £30,000 whilst 8% think they lost more than £30,000. Surprisingly, 7% saw their trade improve during the cold snap.
The last few months have definitely been difficult for SMEs. First they had to cope with the loss of trade due to the recession and then the severe weather.
Stephen Pegge, Lloyds TSB Commercial's head of external affairs, urged small businesses to invest in the technology necessary to allow their employees to work from home in situations where adverse weather conditions exist.
The Lloyds survey covered 1,003 owner-managers; 36% of whom reported negative growth over the past financial year. However, optimism is returning as 65% of respondents say they are now more optimistic about the economy than they were at the end of last year.
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